Dear Reader,
A company I have recently started working for, where I am the only HR representative, grants no leaves whatsoever to the employees.
There are no sick leaves, no casual leaves, no annual leaves.. . . The management explains that until recently they had 6days working at the office. Now they have made 2 Saturdays off, thus giving the employees 2 days off per month. . .
Thus the new rule is, "you don't come for work, you don't get paid".
The employees have accepted this. The problem is that now no one informs the management before taking a leave, they just say, "if I don't come to the office, deduct my day's pay". . .
Now the management wants to deduct 2 days pay for everyday taken by the employee if not informed in advance. . .
My question is How illegal is all this?
From United States
A company I have recently started working for, where I am the only HR representative, grants no leaves whatsoever to the employees.
There are no sick leaves, no casual leaves, no annual leaves.. . . The management explains that until recently they had 6days working at the office. Now they have made 2 Saturdays off, thus giving the employees 2 days off per month. . .
Thus the new rule is, "you don't come for work, you don't get paid".
The employees have accepted this. The problem is that now no one informs the management before taking a leave, they just say, "if I don't come to the office, deduct my day's pay". . .
Now the management wants to deduct 2 days pay for everyday taken by the employee if not informed in advance. . .
My question is How illegal is all this?
From United States
Dear Yamini,
Prima facie everything appears to be illegal. However, you could have given little more information. We would like to know:
a) Your company is located in what state?
b) Your company is registered under Factories Act or Shops and Establishment Act.
Under the provisions of either act, employees are eligible for earned leave. The provisions of act differ from one state to another however, minimum admissible earned leave is 15 days.
Instead of giving two Saturdays off, your employers can very well make six days week. By giving two Saturdays off, in fact management is giving 24 days off per annum unnecessarily. Rather than this let them follow route of law to avoid legal hassles of any kind in future.
Your management can declare that for every 20 working days employee is eligible for 1.5 days earned leave. This way, every employee becomes eligible for 18 days leave per annum. This leave can be accumulated as per the legal provisions.
However, this is not necessarily sufficient. You need to check provisions of law and find out whether you need to give sick leave or casual to the employees.
Now coming to culture of your company. Now your employees have reconciled to the deductions from their salary. They consider it as fait accompli.
I had a case wherein owner of one company started withholding first month's salary. This was done to avoid abandonment of employment by the staffs. He thought that employees will have lure of their one month's salary and will give him sufficient notice and stop abandoning their employment. Nothing happened that way. Employees just reconciled to the deduction of first month salary and they continued to abandon their employment. Hardly anyone came back and asked for his money.
Cases like this happen because of lack of legal awareness in India. Nobody knows what their rights are and not many employers know in what frame of law they can run their business. They are so obsessed with their vision and mission so giving short shrift to the legal provisions hardly matters to them.
Ok...
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.
From India, Bangalore
7855Prima facie everything appears to be illegal. However, you could have given little more information. We would like to know:
a) Your company is located in what state?
b) Your company is registered under Factories Act or Shops and Establishment Act.
Under the provisions of either act, employees are eligible for earned leave. The provisions of act differ from one state to another however, minimum admissible earned leave is 15 days.
Instead of giving two Saturdays off, your employers can very well make six days week. By giving two Saturdays off, in fact management is giving 24 days off per annum unnecessarily. Rather than this let them follow route of law to avoid legal hassles of any kind in future.
Your management can declare that for every 20 working days employee is eligible for 1.5 days earned leave. This way, every employee becomes eligible for 18 days leave per annum. This leave can be accumulated as per the legal provisions.
However, this is not necessarily sufficient. You need to check provisions of law and find out whether you need to give sick leave or casual to the employees.
Now coming to culture of your company. Now your employees have reconciled to the deductions from their salary. They consider it as fait accompli.
I had a case wherein owner of one company started withholding first month's salary. This was done to avoid abandonment of employment by the staffs. He thought that employees will have lure of their one month's salary and will give him sufficient notice and stop abandoning their employment. Nothing happened that way. Employees just reconciled to the deduction of first month salary and they continued to abandon their employment. Hardly anyone came back and asked for his money.
Cases like this happen because of lack of legal awareness in India. Nobody knows what their rights are and not many employers know in what frame of law they can run their business. They are so obsessed with their vision and mission so giving short shrift to the legal provisions hardly matters to them.
Ok...
Dinesh V Divekar
Beware of false knowledge; it is more dangerous than ignorance.
From India, Bangalore
Thanks for the reply Dinesh,
The company is in West Bengal.
The management is happy to give the Saturdays off, since most people took leaves on Saturday and those who did not were also not able to complete their work without their counterparts. . . thus decreasing the overall efficiency. .
Fait accompli or not, Is it the right thing to do? Can an employer, legally, deduct 2 days pay for one day of leave?
Regards,
Yamini
From United States
The company is in West Bengal.
The management is happy to give the Saturdays off, since most people took leaves on Saturday and those who did not were also not able to complete their work without their counterparts. . . thus decreasing the overall efficiency. .
Fait accompli or not, Is it the right thing to do? Can an employer, legally, deduct 2 days pay for one day of leave?
Regards,
Yamini
From United States
Dear Yamini,
It is illegal. you can deduct only the 1 day pay if the employee is absent for 1 day.
Hope yours is a partnership / proprietorship company where the management will put the rule what ever they think.
Better you speak with the management and convince them it is wrong.
Instead you can introduce attendance bonus / rewards for the employees who comes regularly to the office.
If the employee thinks by taking 1 day leave he will be deducted 1 or 2 days then you cannot change the attitude of the employee / employees and it will become the culture of the organisation.
Introduce new system where if you find some employees taking leave without information. give them warning letter and person getting 3 warning letters will be terminated.
From India, Mumbai
It is illegal. you can deduct only the 1 day pay if the employee is absent for 1 day.
Hope yours is a partnership / proprietorship company where the management will put the rule what ever they think.
Better you speak with the management and convince them it is wrong.
Instead you can introduce attendance bonus / rewards for the employees who comes regularly to the office.
If the employee thinks by taking 1 day leave he will be deducted 1 or 2 days then you cannot change the attitude of the employee / employees and it will become the culture of the organisation.
Introduce new system where if you find some employees taking leave without information. give them warning letter and person getting 3 warning letters will be terminated.
From India, Mumbai
Owners are greedy! who think by setting up a business and employing others they are doing some sort of favor !! What a shame
From Kuwait, Salmiya
From Kuwait, Salmiya
This is not only illegal but a very unethical and unfriendly policy. It reveals minmindessness of the organisation.
I suggest you to bring this thing to the notice of labour office immediately.It is also not required to mention your name.
From India, Mumbai
I suggest you to bring this thing to the notice of labour office immediately.It is also not required to mention your name.
From India, Mumbai
As HR professional you explain your management about legal obligation relating to Leave and other employee welfare activity which are mandatory as per Factory Act 1948. make sure that before going to convince your management go through proper and complete understanding of Factory Act.
Prepare yourself firstly, because you are going to explain it to Management, be confident about what you want to say. while explaining explain them about management responsibility and how it will hamper company Image. do not use word which show favor to employee.
For any help relating to Legal Matter you can call directly On Cell Phone:- 09730049501.
Regards
Baba Avhad
Sr. Executive HR & Admin.
09730049501
From India, Pune
Prepare yourself firstly, because you are going to explain it to Management, be confident about what you want to say. while explaining explain them about management responsibility and how it will hamper company Image. do not use word which show favor to employee.
For any help relating to Legal Matter you can call directly On Cell Phone:- 09730049501.
Regards
Baba Avhad
Sr. Executive HR & Admin.
09730049501
From India, Pune
Your company management needs to go through the legal aspects of running an organization. Make some notes and if possible some extracts from legal cases where action has been taken by concerned departments against the companies for such violation of acts.
Now as HR person you need to take some stern action against employee and make sure that their department heads also suffers from this action. Call a meeting of all department heads, make leave policy of action details if the policy is not followed.
The most important aspect is to take in writing from department heads and employees if they take leave without informing.
There are other methods but since your management is not a professional one they will be more interested in reprimanding the employees.
Best of luck
Regards
Suresh Sharma
Kenhr Management Consultancy
From India, Jaipur
Now as HR person you need to take some stern action against employee and make sure that their department heads also suffers from this action. Call a meeting of all department heads, make leave policy of action details if the policy is not followed.
The most important aspect is to take in writing from department heads and employees if they take leave without informing.
There are other methods but since your management is not a professional one they will be more interested in reprimanding the employees.
Best of luck
Regards
Suresh Sharma
Kenhr Management Consultancy
From India, Jaipur
This is ridiculous. How is it possible without any weekly holiday. Even if it has doing this nasty things, is there any other specialty to relax and make the mind fresh?
The government comes in to act to ignore such activities.
From India, Madras
The government comes in to act to ignore such activities.
From India, Madras
Dear Yamini,
This is not only illegal but also unethical to deduct 2days pay for 1 day leave taken.
This is time for you to act, talk to the management.
I can share one such experience of mine. I have worked in an organisation, where there was no leaves given to trainees for one complete year. No Privileged Leave, Sick leave or Casual leave. If leave taken, accordingly the salary would be deducted.
This was liable only for trainees. For laterals all leaves (PL, SL, CL) were given.
However after raising our voice, within a year the policy was changed and now trainees have 10 days of special leave.
My point is if you take initiative, there is a possibility for a positive change.
May be stern actions against the rule breakers can help, but if u really want to help the oragnisation and its people, I would recommend why don’t you go for an open discussion forum of employee and employer regarding this issue
Regards
Rajeshree
Poresys Technologies
From India, Pune
This is not only illegal but also unethical to deduct 2days pay for 1 day leave taken.
This is time for you to act, talk to the management.
I can share one such experience of mine. I have worked in an organisation, where there was no leaves given to trainees for one complete year. No Privileged Leave, Sick leave or Casual leave. If leave taken, accordingly the salary would be deducted.
This was liable only for trainees. For laterals all leaves (PL, SL, CL) were given.
However after raising our voice, within a year the policy was changed and now trainees have 10 days of special leave.
My point is if you take initiative, there is a possibility for a positive change.
May be stern actions against the rule breakers can help, but if u really want to help the oragnisation and its people, I would recommend why don’t you go for an open discussion forum of employee and employer regarding this issue
Regards
Rajeshree
Poresys Technologies
From India, Pune
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